I-T dept detects tax evasion worth crores after raids on Maharashtra groups

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The Income-tax department has detected tax evasion worth crores after it recently raided two Maharashtra-based groups engaged in the business of civil construction and land development respectively, the CBDT said on Tuesday. The searches were carried out on December 22 at over 25 premises of the unidentified groups in Nandurbar, Dhule and Nashik districts of the state.

In the case of entities belonging to the first group, the taxman found that they have resorted to "large-scale suppression of taxable income by inflating their expenses, primarily by way of the claim of non-genuine sub-contract expenses and unverifiable old sundry creditors," the Central Board of Direct Taxes (CBDT) said in a statement. These sub-contracts were awarded to family members and their employees who have not rendered services in this regard, the policy-making body for the tax department said.

 
"Evidence has also been gathered about un-recorded expenses incurred in cash. Preliminary investigation indicates that this group has evaded income to the extent of Rs 150 crore on account of the above malpractices," the statement said.

In the case of the land developers, it said, the department found that a substantial part of the land transactions have been carried out in cash which are not accounted for in the regular books of account."...incriminating documents evidencing receipt of 'on-money' (cash) on land transactions and cash loans exceeding Rs 52 crore have been seized," it said.

The department also seized Rs 5 crore cash and jewellery of a similar value (Rs 5 crore) during the raids on the two groups, the CBDT said.

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